To create a vibrant startup economy in the DC region, we need to make entrepreneurship an elite, cool path in life. We also need to give our kids the practical skills necessary to succeed on their own. Our proposal is to create Defer U, a competitive and selective "Talent Incubator" where young high potential teenagers can come and work on solving some of our nations’ biggest issues: Education, HealthCare, Government Efficiency, Environmental Sustainability. These individuals would defer their first year of college to come and be part of the incubator. They would work in a collaborative environment forming teams and developing business ideas into businesses. They would have access to mentors from different fields, government leaders, and local universities. Defer U would cover the cost of the program and would take a small equity stake in all the "companies". The goal would be to develop 3-5 viable disruptive business models for every program year while developing a new generation of entrepreneurial talent. The program could also expand to younger students for the summer months. DC would become a hub of great, young, entrepreneurial energy as well as a national leader in new models for entrepreneurial education.

The single largest industry in the DC region is government. Government desperately needs innovative solutions to serve citizens better while reducing costs. Meanwhile, the need for the DC region to expand its vibrant startup economy only becomes more urgent as government budget cuts eliminate traditional government jobs across the region. The National Piggy Bank will be a key bridge in this transition from government contracting jobs to government innovation jobs.

The National Piggy Bank is a social platform for organizing, discussing, and realizing scientific, technological, and innovative ideas for public good. Startups are involved at three levels. One, the Piggy Bank has partners with growing startups to build the site and provide benefits to the community of users. Two, community entrepreneurs are participating in conversations on the site and determining the value of ideas. Three, beneficiary startups receive funding or other benefits as part of an "exit strategy" for their good ideas. In sum, the National Piggy Bank will generate shared value for its founders and partners, the startup community at large, and citizens across America. You can see the beta site at http://nationalpiggybank.org.

The DC region includes many great and rising research universities, government institutes, and private advanced technology development centers. Nurturing a richer dialogue between these researchers, faculty, students, administrators and the region’s expansive technology and entrepreneurship community is essential to creating the successful innovation culture we so desire and need. The gap between discovery and a successful business model can be difficult to bridge but regional efforts to support the necessary conversations and provide some limited resources to help researchers engage in some early market research, create and tweak initial prototypes, or recruit early customers can be very effective.

At the same time, it is important to recognize that innovation is not only about the startup – the large existing firm also has a critical role. Some, for example, uniquely have the resources, channels, and platforms to invest, explore, and scale new approaches and discoveries. They too should be part of the conversation.

Solving old problems in new ways, with new insights, processes, materials, or machines is at the heart of the ongoing movement of research universities across the country to become more interdisciplinary and problem centric. Consider NYCTech, the ambitious effort of Cornell and Israel’s Technion, that will be organized around three main hubs: connective media, healthier life, and the built environment. Or closer to home, Virginia Tech has recently created an entirely new institution (the Virginia Tech Applied Research Corporation with offices in Ballston) to facilitate industry engagement.

Individually our region’s universities and research centers are doing great things to better commercialize their research. Materially changing their success, however, might be much easier if we could approach the challenge of creating an entrepreneurial culture on and off campus as a region and not individually.

Why were social media led revolutions so effective in the middle east and the Occupy Movement has not gained the same kind of Traction? There was an easy identified face of evil and the enemy: Ghadafi, Mobarek, Assad.
DC has great momentum as a startup region, let's identify and put a face on the issues that are holding us back, threatening us, and let's unleash the tools that have toppled dictators to create a coordinated movement to get past these hurdles.
Coordination Action on Engaging:
• Venture Capital Firms
• Angel Investors
• Large Corporate Partners
• Local Startup Celebrities
• Government
• Universities
• Service Providers

There are many great existing ideas and programs that are focused on helping increasingly younger people become entrepreneurs, but we are still missing out on the much larger group of existing professionals we already have in this country and especially in DC. And unlike students, these existing professionals can enter and energize the startup community right away.

We need a program that teaches experienced professionals how to translate their existing skills to the startup world. The program would also connect them with experienced entrepreneur mentors who have made the same transition. These mentors would share what is involved, what the real risks and rewards are (vs. the scary unknown many perceive now), and the many ways you can start to explore entrepreneurship while keeping your day job. It would supplement the many great resources we already have for startups here in DC, not replace them.

Company/government professionals have years of experience in many of the technologies and skills that startups are looking for today. They also have a deep understanding of their respective business areas, awareness of the many problems that need solving in those areas, and a network of colleagues they can pull on to help them solve those problems. What they are missing is an understanding of what it takes to start a new company to address those problems and the confidence to make the attempt.

This is a missed opportunity for them, for the larger DC tech community that is missing out on their skills/experience, and for the DC-area corporations/entities that are missing out on key innovations that simply can’t generate from within. San Francisco in particular thrives on employees moving from large companies to startups and then back again.

I’ve experienced both startups and large corporations. It’s amazing how different the world can seem from these different perspectives. By sharing the perspective and potential of entrepreneurship with existing professionals along with the tools for them to take the jump I think we can unlock DC’s hidden tech potential in a way that helps its larger entities as well.

As far as the talk, I don't have a video, but it would probably include some (but not all :) of the following - me tearing off a suit to reveal a DC tech shirt, play acting (i.e. remembering) a frustrated corporate innovator trapped in his cubicle, play acting an entrepreneur desperately trying to connect a corporation/government organization, and a singing finale where both of them come together to change the world (both played by me Bobby McFerrin style :).

When we talk about building a tech scene "like the Valley" we completely miss the point. As someone who has worked and invested in both markets, I believe that the reason why the Valley works for creating high quality startups and exits is the high level of interconnection between startups and the larger companies in the region. It is this permeability that creates the view that everyone in the Valley "works for the Valley" and not their current company. We should build companies that take advantage of established M&A patterns here, and also take advantage of the large number of established companies that are active in many fertile verticals. We are more like the Valley than you think we are -- but rather than focus on Consumer Internet as the only technology entreprenuerial behavior that matters, we should focus on the far broader opportunities available here while we also building consumer software and mobile companies that are attractive to our large base of media and communications companies. Additionally, with coming changes in the Federal Defense budget there are going to be large product company opportunities and a boom in local acquisition activity. With the help of one of my MBA students we have looked at EVERY M&A deal here and in the Valley for the last five years. What we have learned, and what we can use to build a better startup ecosystem here is very important to know. There are exceptional comapny creation opportunities here for entreprenuers, and we need to do a better job of connecting the dots with the larger companies in the region. This is much more than a "government town" and the M&A data we are collecting shows that. The data that we've accumulated illuminates a path towards a real road map for success. I'd like to use my time with the group to talk about that.

Exposing the Black Box

Abstract

Too often, entrepreneurs believe the success of their startup rests with a dedicated focus on the transparent “white box.” Any entrepreneur can tell you what this means: setting a vision, building the product or service, determining how to market and sell your solution, and finding great talent to execute on the business mission. While essential to success, there is so much more. This is what I call the “black box” barrier.

The black box is filled with activities that complement what's in the white box, because startup success depends not only on the ingenuity and quality of the product or service, but having the right plan to drive feedback and revenue. Items in the black box include mentoring from peer entrepreneurs and executives who've been there and done that, objective advice from a Board with executive experience and connections, and implementation of client feedback, sales, and marketing programs. These may seem obvious, but they have a nuance that can greatly impact the success of your business.

It's easy for entrepreneurs to focus on the white box, because that's what they understand best. It's harder to delve into the black box, because the items in it are not as well understood and often require the humble confidence required to receive frank advice with open ears but without giving up the determination that is essential to any entrepreneur. Where we can make a difference and help startups succeed is by making sure that entrepreneurs recognize the importance of the black box as early in the business lifecycle as possible - and have easy access to the key advisors and personnel who can provide guidance, raise awareness, and close deals.

Let's finally expose the black box. After all, it's a barrier to success we have the power to remove.

Any DC-oriented start-up initiative would miss a huge opportunity by not directly addressing the government as a customer and an investor. A common problem with start-ups that fail is that they do not efficiently address a need (typically burning a lot of resources in the process). Failed start-ups and the US government have something in common in this respect.

Efficiently making best use of our resources requires a proper alignment of motivations, assets, and goals. “Efficient Startups” proposes to use the supply of fledgling entrepreneurs and match them with real needs which the government has already offered financing to help fix. Unlike start-ups in any other US city, DC entrepreneurs are uniquely suited to gain local, direct access to pertinent thoughts and people on the scene.

The key to this proposed community is transparency of mission and execution. The power of this initiative comes not just from the pairing of workers to projects, but rather in the pairing of motivations to a worthy cause. By using an open-sourced format, the instantly appreciable incentive includes the satisfaction of contributing to the community and receive attribution for their work. If an individual makes notable contributions they will benefit not only from the learning experience but also establish themselves as a proven asset and candidate for other projects. Some contributions that are given to the community will serve its own purpose; groups who are lobbying or have lobbied for certain types of government programs will eagerly share their ideas, plans, and info on funding programs for the issue of their concern.

The community will build upon itself as ideas and opportunities are shared, similar to the spirit and fashion of LinkedIn’s "Answers" format. Problem solving addressing a start-up will be aired in the open where all can learn from it. Because we all have an interest in making the government more efficient in serving us, only good can come from a successful execution of the ultimate business plan. Furthermore, until the government stops issuing grants, there will be no shortage of contracts that can be taken on. A system will have to be developed which allows a group to “win” the opportunity to spearhead a business plan prior to opening it up to contributions from the community, but beyond that this system is no different than many successful idea sharing websites out there. Open-sourced communities like Drupal and Wordpress have made the impossible possible for small businesses to break through glass ceilings, it is now time that we apply that same proven meme to serve a powerful need.

If you contact our census bureau, they will tell you that DC has the second highest technology population after Silicon Valley. In addition, we have the nation’s highest concentration of advanced and post graduate degrees – meaning there are more entrepreneurs in DC with advanced degrees than in Silicon Valley.

So then, why are Washingtonians not even close to Silicon Valley in terms of technology, funded startups, and investment opportunities? Ton of reasons that I spare you all here. But this is the list of changes I like to see:

Regardless how great our ideas are, but in most cases we won’t be able to go far without the backing from VCs and Press.

1. Local media – in particular, the Washington Post – large and small alike – need to place more value on coverage of startups. They may not have the advertising dollars to help your revenue stream initially, but with your support, many of them will in future. So, think big PLEASE. We need you as much as you need us.

2. The VC community needs to lighten focus on Excel spread sheets and la-la land exit strategies and hone in on ideas, technology, market potential and entrepreneurial je ne sais quoi. Do your homework on our inventions and craft your own analysis of its business potential. Then, use your own business and financial experience to identify key executive hires like the CEO, CFO and VP of sales. As an entrepreneur – particularly a first time entrepreneur – don’t depend on our vision of an exit strategy to close your deal. We have probably never done it, and are dreaming a Google dream on your dime.

3. Washingtonian Bloggers… if our online media and VCs drop the ball, it is your job to create the buzz desperately needed by our startups – blog, baby, blog. Stay positive though. We need to work with our local universities on this.

Hundreds of international trade and development projects are launched every year from organizations based in DC, providing an opening to fast growing markets in places like Latin America and Africa. Still, for Startups it can be extremely challenging to figure out how to play in this area and whether international is a fit.

My idea is to create a special “international idea lab” just for Startups to help them quickly look at whether (and how) their ideas might play in the international arena and how they might connect into the international/development field. We could pair this with a small seed fund, making a pilot relatively risk-free for a donor (or corporate foundation in the case of a CSR effort) to try out a Startup-generated solution. It might also be possible for donors to create a small set-aside fund for contracting with Startups on small projects. Rather than being a one-time contest, this would provide Startups with an ongoing place to vet ideas aimed at the broader world.

The lab would be run like a startup itself -- short meetings, quick and dirty analysis, emphasis on big ideas and fun – and would be designed to be financially sustainable for the Startups participating and the “Lab Rats” (advisors) who would help new ideas become more international-ready, including the thought that successful firms would kick back a little money to the lab as part of any contract that was successful.